Requirement 7

Personal Management Merit Badge

Explain to your merit badge counselor the following:

  1. What a loan is, what interest is, and how the annual percentage rate (APR) measures the true cost of a loan.
  2. The different ways to borrow money.
  3. The differences between a charge card, debit card, and credit card. What are the costs and pitfalls of using these financial tools? Explain why it is unwise to make only the minimum payment on your credit card.
  4. Credit reports and how personal responsibility can affect your credit report.
  5. Ways to eliminate debt.


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